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FAFSA 101Free Application for Federal

Student Aid

Your Presenter

• Carol Handlan• Higher Education Access Partner

Cumberland Valley Region• chandlan@pheaa.org

We’ll talk about…..

• What is the FAFSA?• How do I apply? When do I apply?• What other applications might I need

to file?• What happens after I apply?• Where can I get help?

What is it?The FAFSA is the primary

means of applying for financial assistance to attend

postsecondary school

FAFSA

Financial Aid Available

• The FAFSA is used to determine eligibility for the following:» Federal programs, such as Pell Grants, work-

study, and loans » State programs, such as Pennsylvania State

Grant, state work-study, and other special programs

» School programs, such as need-based grants and scholarships.

Financial Aid Available

• Know what form(s) your school(s) require!»FAFSA»CSS Profile » Institutional Form»Other?

When to Apply

• The FAFSA may be filed beginning on January 1 of the upcoming award year. For the 2012-13 award year this would be January 1, 2012.

• Note that if a paper FAFSA is submitted prior to January 1 for an award year it will not be accepted.

Most Important:Know Your School’s FAFSA

Application Deadline

FAFSA

Ways to apply

FAFSA4caster

• For those not beginning postsecondary school in 2012

FOTW

FAFSA On The Web

Web Address:fafsa.gov

(be sure of the extension)

FOTW (FAFSA On The Web)

Why Apply Online?

• Faster• Easier

• Detailed Help and Hints• Skip Logic

• Data Integrity Checks

FOTW (FAFSA On The Web)

www.fafsa.gov

Personal Identification Number (PIN)

• Website: www.pin.ed.gov• Sign FAFSA electronically

»Not required, but speeds processing• Student and parent sign with PIN• Do NOT lose it. Write it down and store in

a safe place. • Do NOT share it with anyone

FAFSA

TIPS• Don’t mix answers for student and parent information.• Ensure SSN accuracy.• Gender question is optional – answer it!• Have federal income tax and other related information as references. • If you have yet to file your federal income taxes, you can estimate income information and update/correct later with IRS Data Retrieval. • Don’t delay

Documents Needed to Complete the FAFSA:

• Applicants may need the following items:

» Social security numbers» Drivers license (student only; this information is optional)» Federal income tax returns (1040, 1040A or 1040EZ)» W-2 forms from all employers» Current bank statements (checking and savings)» Current business and farm records» Records of any stocks, bonds and other investments, including 529

accounts» Additional untaxed income tax records may be needed such as: Veteran’s

non educational benefits, child support paid/received and workers compensation.

» Alien registration or permanent resident card (if not a US citizen)

Who is independent?

• 24 or older on Jan 1st of award year (1/1/89)• Veteran (includes active duty personnel)• Working on graduate level degree• Emancipated minor in legal guardianship• Orphan, in foster care, or ward of the court at anytime when student was age 13 or older• Have legal dependents other than spouse• Student deemed homeless by proper authority

Highlights

FAFSA On The Web

Customized “My FAFSA” Start Here for all options –

Initial FAFSA Entry Renewal Application Entry FAFSA Corrections Providing Signatures Continuing a Saved FAFSA Viewing Transaction History

FOTW - Login

FOTW – App Selection/PIN Status

FOTW – Start New FAFSA

FOTW – Student Demographics

FOTW – Student Eligibility

FOTW – School Selection

FOTW – School Re-ordering

FOTW – Dependency Determination

FOTW – Parent Demographics

FOTW – Parent Financial Info

FOTW – Parent Asset Question

FOTW – Student Financial Info (Cont’d)

FOTW – Sign & Submit

FOTW – eSignature Process

FOTW – Confirmation Page

IRS Data Retrieval

FAFSA On The Web

IRS Data Retrieval Tool

• While completing FOTW, applicant may submit real-time request to IRS for tax data

• IRS will authenticate taxpayer’s identity• If match found, IRS sends real-time results

to applicant in new window• Applicant chooses whether or not to transfer

data to FOTW

IRS Data Retrieval Tool

• 2012-2013 FAFSA on the Web will include logic to determine if the student and/or parent(s) is eligible to use the IRS Data Retrieval Tool

• Students and parents who were eligible to use the IRS Data Retrieval Tool but didn’t, will receive an e-mail notification encouraging them to return to FAFSA on the Web and use the tool

• If estimated income used, can go back once taxes are filed and use IRS Data Retrieval Tool

IRS Data Retrieval

IRS Data Retrieval (Cont’d)

PHEAA State Grant Interface

FAFSA On The Web

Two Apps in One Process

Take advantage of the opportunity to file your FAFSA and your

State Grant application in one online session!

Student Demographics

First page of the FAFSA. This is the page where the student identifies their state of legal residence

Pennsylvania

16600

Anywhere

814-555-5555

PA

Student Demographics

State residency information is established.

FOTW now knows what state application to present to the student .

PennsylvaniaAnywhere

16600

PA

Pennsylvania

Application Submission

Once the applicant completes the remainder of the FAFSA, they can sign and submit their FAFSA for processing

Confirmation Page

After submitting, the students are provided with a confirmation page from which they will be given the option to transfer their FOTW data to their state grant application.

Pennsylvania residents – Complete the State Grant application

Pennsylvania residents – Complete the State Grant application

Click here if you want to apply for the Pennsylvania State Grant.

Click here if you want to apply for the Pennsylvania State Grant.

On-Line State Grant Application

• At this point, students who click on the link will be automatically moved to the PA State Grant Form for the completion of the additional data information items that are needed.

On-Line State Grant Application

• The opportunity to use the on-line State Grant application will only occur at the point of completing the first FOTW. It cannot be accessed at any other point in time.

• Renewal students may not need to complete the State Grant Form and a message will indicate that to them.

On-Line State Grant Application

• Students who do not take advantage of this opportunity will still be able to complete the on-line State Grant Form (SGF) through Account Access as they have in the past. They will be directed via email to Account Access at pheaa.org.

On-Line State Grant Application

On-Line State Grant Application

On-Line State Grant Application

» Students will now be presented with the additional questions needed to determine State Grant eligibility which includes such items as enrollment status, value of PA 529 College Savings Program, program of study for students in vocational programs, and employment status.

» Help screens are available for all questions.

All Done!

All Done!

• Printing , signing, and mailing in the State Grant confirmation page is the last step in the process. PHEAA is working on an electronic signature capability but that is not available at this time.

• Students will be able to view their status on Account Access available at pheaa.org about three days after completing the FOTW.

• Establish a personal account at pheaa.org.

FAFSA 101

OK, I filed ---What’s next?

After the FAFSA

• EFC Calculated • SAR/e-SAR• State Grant eligibility calculated• Schools receive results• Schools produce award letters• Compare award letters• Determine true cost of school

Expected Family Contribution (EFC)

• The EFC is a number derived from a federal formula which considers a family’s income, assets, and other factors

• In theory, the EFC is the amount a family can reasonably be expected to pay toward college expenses each year

• In reality, it is not the amount a student is required to pay and it rarely is the amount a family actually pays.

How is the EFC calculated?

• Parent contribution + student contribution = EFC• Bulk of EFC comes from income• Home, personal property, qualified retirement funds, and

value of life insurance excluded from assets• Asset protection allowance (based on age of older parent, or

the parent if single parent household)• Parent asset contribution usually = roughly 6%• Student income contribution = 50% of amount over $6,000• Student asset contribution = 20% of assets• Parent contribution divided by number of children in college at

the same time

What is Need Analysis?

• A student’s financial need is determined through a process called “need analysis”. Need analysis has two components – the student’s cost of attendance at the institution attended and the student’s Expected Family Contribution (EFC).

Special Circumstances

• Divorced or separated parents• Stepparents• Adoptive parents• Foster parents• Legal guardians• Living with others• Recent death or disability• Reduced income

FAFSA 101

Final Thoughts

Important Notes:• Get your PIN: pin.ed.gov• File FAFSA for 2012-13• Do your FAFSA and State Grant app at the

same time• Meet your school’s deadline.

FOTW

Resources

• pheaa.org• EducationPlanner.org• Youcandealwithit.com• Myfedloan.org• Toll Free: 1-800-692-7392• Federal Student Aid Info Center – 1-800-433-3243• www.fafsa.gov• www.federalstudentaid.ed.gov – general financial aid

info• www.direct.ed.gov – information on federal loans

Contact Information

• Carol Handlan• Higher Education Access Partner

Cumberland Valley Region• chandlan@pheaa.org

QUESTIONS?